IVANS has reported an increase in average premium renewal rate change across all major commercial lines in the fourth quarter of 2023.
All lines are up year-over-year, expect for Workers’ Compensation, IVANS noted.
Business Owner’s Policy (BOP), General Liability, Commercial Property and Umbrella each ended the year with their highest average premium renewal rate change.
IVANS said that 2023 average premium renewal rate change was higher for all lines of business compared to 2022.
At the same time, Commercial Property average premium renewal rate change was consistently higher compared to all other lines of business in 2023.
For Commercial Auto, Q423 premium renewal rate averaged 8.79%, which is a solid increase compared to Q323’s premium renewal rate of 7.01%. The quarter began with the lowest rate change in October, averaging 8.52%, and reached its highest rate in November, averaging 9.19%.
Moving on to BOP, premium renewal rate increased in the quarter with an average of 9.12% versus 7.74% in the same period a year ago. The quarter began with the lowest rate change in October, averaging 8.77%, and ended with its highest rate in December, averaging 9.72%.
In addition, General Liability Q423 premium renewal rate experienced an increase compared to Q323, averaging 5.83% versus 5.43%. IVANS noted that Q423 premium renewal rate experienced its low in November at 5.65% and ended with its highest rate in December at 6.16%.
As for Commercial Property, average premium renewal rate change for experienced an increase during the quarter, at 10.34% versus 10.08% in Q323. However, the quarter experienced its lowest rate change in November, averaging 9.93%, and reached its highest rate in December, averaging 10.67%.
Umbrella experienced an increase during Q4 at 6.39% versus 5.29% in the prior year period. The quarter began with the lowest rate change in October, averaging 6.22%, and ended with its highest rate in December, averaging 6.62%.
And lastly, Workers’ Compensation premium renewal rate change averaged -0.64%, up from Q323’s -0.99%. IVANS also explained that the fourth quarter began with the lowest rate change in October, averaging -1.26%, and reached its highest rate in November when it rose above zero for the first time in 2023, averaging 0.15%.
Brad Boyer, chief product officer, Ivans, commented: “Premium renewal rate changes continued to increase across all major commercial lines products in Q4, with many reaching year-end highs throughout the quarter. In addition, Workers’ Compensation reached its highest rate, rising above zero, in November.
“As we begin 2024, we’ll be watching the data to see how the hard market trends of 2023 carry into this year and understand the macroeconomic factors impact on renewals and where markets are investing to create the greatest return.”
The IVANS index is released on a monthly basis as a data-driven report of current conditions and trends for premium rate renewal change of the most placed commercial lines of business across the insurance sector.
